Jose Lozano, a broker formerly employed with Miami, Florida-based ITAU International Securities, Inc. (ITAU International), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he affixed customer signatures to wire transfer instructions to facilitate the transfer of funds for the purchase of property.
According to FINRA, Jose Lozano, of Miami, Florida, had two of the three customers who jointly held ITAU International accounts sign a Letter of Authorization (LOA) that included wire instructions which authorized the transfer of $150,000 from a third-party broker-dealer to the seller of the property. The third-party broker-dealer declined the transfer, however, due to the transfer being sent to a third-party recipient.
FINRA’s findings stated that on the next day, Jose Lozano allegedly drafted another Letter of Authorization which included wire instructions which sent the funds to his member firm, ITAU International, who could then send the $150,000 wire transfer to the property seller. In order to do this, Jose Lozano, with just the verbal authorization of one of the account holders, allegedly affixed photocopies of the two customers’ signatures from the first LOA onto the second LOA, in violation of FINRA Rule 2010. Jose Lozano was fined $5,000 and suspended from association with any FINRA member in any capacity for one month.
Stockbrokers, financial advisors, and other industry professionals have been known to engage in many types of misconduct and unlawful behavior, including the altering of LOAs. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. These rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If brokerage firms and their supervisors do not establish and implement these protective measures, they may be held liable to account holders for losses flowing from the misconduct. As a result, investors who have suffered losses due to altered or unauthorized LOAs or other misconduct can bring forth claims to recover damages against broker-dealers like ITAU International Securities, which have a duty to supervise its employees in order to prevent the above-described misconduct.
Have you suffered losses in your investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers and other financial professionals for altered letters of authorization, mismanagement of accounts, and/or other unauthorized and illegal conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.